Taxation in India : Taxation categories ;Central and State Government Taxes

1. A PRESENTATION ON
TAXATION SYSTEM IN INDIA
BY PRAJAKTA PATIL
PGDM1- 1407

2. What is Tax?
Indian Taxation System is Based on 3 Tier System
1) CENTRAL GOVT
2) STATE GOVT
3) LOCAL GOVT

3. TYPES OF TAX
DIRECT
 INCOMETAX
(House,PropertyBusiness,Profession,Sal
aries,Capital Gains)
 CORPORATION TAX(1961)
 PROPERTY TAX
 GIFT TAX
INDIRECT
 CUSTOMS DUTY
 SERVICE TAX
 EXCISE
 GOODS AND SERVICE TAX
 CENTRAL SALES TAX
 SECURITIES TRANSACTION TAX
 VALUE ADDED TAX

4. Taxes taken by-
CENTRAL GOVERNMENT
CUSTOMS(1962)
CORPORATION TAX
SALES ( Purchases of commodities within the
country)
SECURITIES TRANSACTION TAX(1st
october,2004)
ANTI DUMPING DUTY
EXCISE(1944)

5. Taxes taken by-
STATE GOVERNMENT
STAMP DUTY
STATE EXCISE
VAT(220+) Items
LAND REVENUE
PROFESSION TAX
ENTERTAINMENTS,
AMUSEMENTS

6. STATUS INDIAN INCOME FOREIGN INCOME
RESIDENT AND ORDINARY
RESIDENT
TAXABLE TAXABLE
RESIDENT BUT NOT
ORDINARY RESIDENT
TAXABLE NON TAXABLE
NON RESIDENT TAXABLE NON TAXABLE
TAXES BASED ON THE CRITERIA OF PEOPLE
1) i)Stays in INDIA for 182 days in a year
ii)60 Days during the year and 365 days during the preceeding 4 years
2) NOT PRESENT IN India for 730 days during the 7 yearsor non resident in 9 out of 10
years

9. BASIC EXCISE DUTY: This is the duty charged under section 3 of the Central
Excises and Salt Act,1944 on all excisable goods other than salt which are produced or
manufactured in India at the rates set forth in the schedule to the Central Excise tariff
Act,1985.
ADDITIONAL DUTY OF EXCISE: Section 3 of the Additional duties of Excise
(goods of special importance) Act, 1957 authorizes the levy and collection in respect of
the goods described in the Schedule to this Act. This is levied in lieu of sales Tax and
shared between Central and State Governments. These are levied under different
enactments like medicinal and toilet preparations, sugar etc. and other industries
development etc.
SPECIAL EXCISE DUTY: As per the Section 37 of the Finance Act,1978 Special
excise Duty was attracted on all excisable goods on which there is a levy of Basic excise
Duty under the Central Excises and Salt Act,1944.Since then each year the relevant
provisions of the Finance Act specifies that the Special Excise Duty shall be or shall not
be levied and collected during the relevant financial year.
EXCISE DUTY

10. OTHER TAXES
PROFESSIONAL
Levied by Municipal Corp.
DIVIDEND DISTRIBUTION
Levied on companies by Indian Govt i.e., 15%
MUNICIPAL TAX
Levied By Municipal Corp on Property
ENTERTAINMENT TAX
Levied by State Govt on movie tickets,major commercial
exhibitions, DTH Service,Cable Service
STAMP DUTY,REGISTRATION FEES,TRANSFER TAX
Property Tax
EDUCATION CESS
Excise Duty,Income Tax and Service Tax
SURCHARGE
Extra Charges
WEALTH TAX
1% on Net wealth exceeding 30 lacs
TOLL TAX
Infrastructure(bridge,roads)

11.  The total revenue realization from Direct and Indirect Taxes increased
from ` 1881.19 billion in 2000-01 to ` 6076.45 billion in 2008-09. The
percentage share of revenue realization from direct taxes to the total
revenue realization increased from 36.3% in 2000-01to 55.7% in 2008-09,
whereas, the percentage share of revenue realization from indirect taxes
declined from 63.7% in 2000-01 to 44.3% in 2008-09.
 Revenue collection from direct taxes increased from ` 683.05 billion in
2000-01 to ` 3382.12 billion in 2008- 09. The percentage share of revenue
realization from corporation tax to the total revenue realization from
direct taxes increased from 52.3% in 2000-01to 63.2% in 2008-09,
whereas, the percentage share of revenue rea from income tax decreased
from 46.5% in 2000-01 to 36.7% in 2008-09.
REVENUE COLLECTION

12. JOKE ON TAX
1) What are you doing?
Ans-Business:- Pay Professional Tax
2)What are you doing in Business?
Ans-Selling the goods:- pay Sales Tax
3) From where are you getting Goods?
Ans-From other state Abroad:- Pay Central Sales Tax, Custom Duty, Octroi
4) What are you getting in Selling Goods?
Ans-Profit-Pay Income Tax
5)Where do you manufacture Goods?
Ans-Factory- Pay Excise Duty
6) Do you have staff?
Ans-Pay staff Professional tax
7)Have you taken or given any service?
Ans-Yes, Pay Service Tax
8) How come you got such abig amount?
Ans- Gift on Birthday: Pay Gift Tax
9) To reduce tension foor entertainment where are yoi going?
Ans-Cinema or Resort:Pay Entertainment tax
10) Have you purchased House?
Ans- Pay Stamp Duty Registration Fee
11) Delayed anytime paying any Tax?
Ans-Yes-Pay Intrest Penalty
12) INDIAN: Can I die now?
Ans-Wait- we are about to launch the death Tax

13. THANK
YOU....